Bug beating franchise in court

A FRANCHISOR promoting franchises for Year 2000 compliance software has been taken to court by the Australian Competition and Consumer Commission.

The ACCC alleged Millennium Solutions, Millennium Group Australasia and Millennium Diag-nostics engaged in misleading and deceptive conduct.

The commission also alleged Millennium Solutions breached the mandatory Franchising code of conduct.

It alleged that Millennium Solutions:

• Represented to have 350 support staff available in 100 Australian locations as well as full marketing, administration and consultation support infrastructure when it did not

• Had no reasonable basis for claiming distributors, purchasers or franchisees could earn $600,000 a year

• Represented it had the sponsorship or approval of Federal Gov-ernment bodies when it did not

• Represented that distributors, purchasers or franchisees required only basic computer knowledge and skills when, in fact, a higher level of skill and understanding was needed

• Represented distributors, purchasers or franchisees would be provided with stock when it had no intention of supplying stock or reasonable quantities of stock within a reasonable period of time

• Represented the products it promoted obviated the need for tailor-made Year 2000 compliance programs when they had limited application and may not work on some computer systems.

In addition, the ACCC alleged Millennium Solutions failed to provide a current disclosure document in the form of Annexure 1 to the Franchising Code of Conduct in response to a written request.

The commission is also taking action against Millennium Diag-nostics and Millennium Solutions director Michael Henderson for allegedly being knowingly concerned in the alleged breaches.

The ACCC has sought an interlocutory injunction against the companies and Mr Henderson until such time as the substantial case alleged by the ACCC is determined.

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